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Giving up this service may displease our customers and sever ties that took us years to build. You, as president, have suggested buying from an outside and reselling the CDS. However, based on the comparative income analysis between these two alternatives, producing the CDS ourselves will yield $5,000 more income per year. It is then recommended that we continue our operations in the CDS department.
Thus, we need to address the production inefficiency problem of this department. As mentioned earlier, the roots of the problem are the aging equipment. At this point, we have to choose between repairing the equipment or replacing it with a new one, once and for all...
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